The seasonally adjusted estimate of the number of UK residential property transactions totalled 94,800 in September, marking a 4% year-on-year decrease and marginally month-on-month, HMRC has revealed.

The latest data marks the fourth consecutive drop in residential property transactions month-on-month.

The monthly estimates for property transactions by HMRC are based on its own records as well as those of Revenue Scotland and the Welsh Revenue Authority, for Stamp Duty Land Tax (SDLT), Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT) in each of the three nations, respectively.

For non-residential property transactions, the seasonally adjusted estimate stood at 10,160, which is marginally lower month-on-month and year-on-year.

Director at MT Finance, Tomer Aboody, said the latest data reaffirms the "lack of confidence in the government" as buyers and sellers fear increased costs and rising interest rates.

He added: "Affordability is the major issue, with interest rates - which have been held steady for a while - are potentially subject to change soon, as the Bank of England contemplates an increase.

"Any positive action the government makes with regards to its scheme for first-time buyers and encouraging developers may be dampened by the fear of vacant properties being seized or taken control of by local authorities, and higher costs for investors."

Chief es and marketing officer at Phoebus Software, Richard Pike, added: "With borrowing costs remaining high and affordability stretched, many buyers are cautious about committing to a purchase, particularly if they are hoping for more favourable conditions ahead. The Government’s proposed first-time buyer schemes should provide some support, but it will take time for this to translate into higher transaction volumes.

"Until affordability improves and buyers feel more confident about the economic outlook, a sustained recovery in the housing market could remain some way off."

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